WHEREAS the UN has predicted that GDP growth will be 3.6 percent in the current fiscal year, above target, but not much, the inflation figure continues to be troublesome. The Pakistan Institute of Development Economics (PIDE) conducted a survey which forecast inflation at 14.58 percent, a good three percent above target. This latter figure came only a day after the Federal Bureau of Statistics reported inflation, measured by the year-on-year reading of the Consumer Price Index, as running at 12.6 percent. The inflation figure being off the mark indicates that either the official machinery used to predict the inflation rate is in urgent need of rectification, or the government wanted to misrepresent it in the first place, for which the only remedy is a change of heart. Since the official predictions have been hitherto correct, and the government has repeatedly in other ways shown its disdain for the people, it seems that the latter is the case. However, the 'Economic and Social Survey of Asia and the Pacific 2010 expressed concern over the electricity shortage. It stated that the quality of life and human capital were adversely affected in the case of frequent electricity outages of long durations. Though the government probably needs no telling, here was another source saying that the chronic power outages are affecting both industry and the quality of life adversely. While the slowdown in growth is to do with this, and the inability of industry to function at full throttle has adversely impacted our exports, and that too at a time when Pakistan is in crying need of foreign exchange; the report mentioned that both exports and imports contracted. While the global economic crisis led to a decline in exports by 6 per cent, imports contracted at a much faster rate by 11 percent, due to lower domestic demand coupled with massive fall in international oil prices. Depreciation of the rupee also played a role in this, while the strong growth momentum in the workers remittances continued. The first step the government must take to contain inflation and spur growth is to shake off the shackles of the IMF, whose policies have proved anti-people and anti-growth. Even if this means breaking with the USA in the War on Terror, this would be a small price to pay. The right time is approaching, as the Budget, and with it the governments announcement of its economic strategy for the coming year. The UN, like the IMF, is pressing for more taxation on the excuse of broadening its base. The government will have to take bold steps if it wishes to avoid this.